/prod-the-processor/media/agency_attachments/EB8E9EAMaN2KqoFW4QbL.png)
/prod-the-processor/media/media_files/bTzpUV5C0mAOa7con1oE.jpeg)
The government has informed the Parliament about the substantial increase in allocation for defence modernisation. Funds allocated for this purpose have risen from Rs 80,959.08 crore in FY 2019-20 to Rs 1,32,301.27 crore in FY 2023-24. These funds are efficiently used for operational activities, and if necessary, priorities are adjusted to ensure crucial capabilities are acquired without compromising defence preparedness.
Promoting Indigenous Contribution and Self-Reliance
To encourage domestic industry's role in defence modernisation, the government has set aside funds for FY 2023-24 in a 75:25 ratio, with 75% (Rs 99,223.03 crore) dedicated to domestic procurement and 25% (Rs 33,078.24 crore) for foreign procurement. Several policy initiatives and reforms have been introduced to foster indigenous design, development, and manufacture of defence equipment. The Defence Acquisition Procedure (DAP)-2020 gives priority to capital items sourced domestically.
Support for Micro, Small, and Medium Enterprises (MSMEs)
The government actively involves Micro, Small, and Medium Enterprises (MSMEs) in defence procurement to boost the MSME sector. The Defence Acquisition Procedure (DAP) 2020 focuses on 'Atmanirbhar Bharat,' emphasizing indigenisation, innovation, and import substitution. The Make in India initiative aims to integrate MSMEs and start-ups into the defence supply chain to enhance self-reliance.
Capital Acquisition Contracts and Technology Development
Over the past five fiscal years (2018-19 to 2022-23), the government has signed 239 capital acquisition contracts for defence items/equipment. Notably, 68% of these contracts, accounting for their total value, have been inked with Indian vendors, including MSMEs. Furthermore, the Technology Development Fund (TDF) scheme has been approved to encourage public/private industries, particularly MSMEs and start-ups, in designing and developing indigenous defence technologies. To date, 41 MSMEs and 20 start-ups have received support through this scheme.
Aligned with the Government of India's initiative to promote Indian millets during the 'International Year of Millets–2023,' approval was granted to provide millets flour (Bajra/Jowar/Ragi in the ratio of 10:10:5) up to 25% of atta/rice in the existing ration scales for all personnel reliant on the Army Service Corps during the current fiscal year.